FOR IMMEDIATE RELEASE:
February 16, 2012
OSISKO TO OPTION TRI ORIGIN?S RLX PROPERTY, RED LAKE, ONTARIO
Tri Origin Exploration Ltd. (TSX-V: TOE) (?Tri Origin? or the ?Company?) is very pleased to announce the completion of a Letter of Intent (?LoI?) to enter into an important exploration agreement with Osisko Mining Corporation to advance the Company?s 100%-owned Red Lake Extension (?RLX?) property at Red Lake, Ontario. The LoI outlines the terms under which Osisko will fund exploration programs at RLX to earn an equity interest in the property.
Robert Valliant, CEO of Tri Origin stated, ?We are excited to have Osisko with its significant expertise in the gold mining business join Tri Origin in its search for gold at Red Lake. Osisko?s recognition of the exploration potential of the RLX property and the need for a more sustained and capital intensive effort to unlock this potential will be of great benefit to our exploration program going forward.?
The key terms agreed to in the LoI give Osisko the right to earn an initial 51% interest in the property by funding $5.0 million on exploration over a 4 year period and by paying Tri Origin a total of $800,000 in cash during the period. If these conditions are met, Osisko will then have the right to either earn up to a total of 65% interest in the property by completing detailed deposit delineation and a bankable feasibility study or to enter into a 51% Osisko-49% Tri Origin joint venture to further explore the property. Tri Origin will be operator of the project for the first year and Osisko will have the option to become operator each year thereafter.
Osisko has also agreed to participate in a private placement for 5 million common shares of Tri Origin at $0.07 per share for total proceeds of $350,000. The Company anticipates that the placement will close on or around February 17th, 2012 subject to regulatory approval. All securities will be subject to a hold period of four months and one day from the date of closing. Proceeds of the placement will be used for mineral exploration at the Company?s properties in Northern Ontario and for general corporate purposes.
The RLX property covers an area of 121 square kilometres along the south-eastern extension of the Red Lake greenstone belt and adjoins Goldcorp?s Red Lake mine property 10 kilometres southeast of the Red Lake Mine. Tri Origin has conducted regional geological, geophysical, geochemical and drilling programs at RLX. This work has successfully established that the important gold hosting rock units and structures of the Red Lake District extend across the property and has resulted in prioritization of target areas that now require detailed exploration. The agreement with Osisko will allow detailed exploration to proceed with expedient and full evaluation of selected target areas within this large, well-located property that, prior to Tri Origin, had not been explored for gold.
Both parties are now working toward timely completion of the final option agreement and planning of exploration programs that are expected to commence at the start of the coming field season.
About Osisko Mining Corporation
Osisko Mining Corporation operates the Canadian Malartic Gold Mine in Malartic, Quebec, and is pursuing exploration on a number of properties, including the Hammond Reef Gold Project in Northern Ontario. Osisko employs more than 700 individuals.
For further information about Tri Origin, please refer to the Company?s website www.triorigin.com or SEDAR www.sedar.com or contact:
Dr. Robert Valliant, President
Tri Origin Exploration Ltd.
Tel: (905) 727-1779
E-mail: invest@triorigin.com
Tri Origin Exploration Ltd. is publicly listed on the TSX Venture Exchange under the trading symbol TOE. Tri Origin is a leading Canadian exploration company with gold and base metal projects in the Canadian Shield. Tri Origin has leveraged exposure to mineral discoveries in Australia through its equity interest in its affiliate, TriAusMin Limited which holds gold and base metal resource-based assets in New South Wales.